Can diminished value be greater than the cost of the repair?

[kingkong5]

And how would I go about asking the insurance company for that money? Last week in my 2018 100D I was the front car in a 3 car chain reaction. It was at a stop light that had just turned green, and while waiting for the three cars in front of me to proceed, a driver coming down the road 2 cars back (presumably not paying attention) said he glanced up, saw the green light, and plowed into the car behind me, which sent that car into the back of mine. Ended up with a small scratch/dent in my back bumper. The car behind me (the one in the middle of the sandwich) didn't fare as well, and it's bumper was almost knocked off.

I got everyone's name and insurance info. The guy's insurance who caused the accident accepted fault almost immediately, and sent me to a Tesla certified repair facility nearby. I was just told that insurance is repairing my car and it will be take 3 days, and the repair bill is just a shade over $1,000. So I'm thinking they're just repairing the bumper, repainting, and I'm good to go.

But now my problem is that with an accident on the record for the car, my car's resale value will have taken a hit. I also believe that it is right that their insurance should compensate me for this - if they return my car, via repair, back to its pre-accident condition, they should also restore it back to its pre-accident value. And with the Tesla market the way it is, I know that when a potential buyer compares identical cars, but one with an accident history, it will have much lower perceived value.

My dilemma is that for such a small bump/scratch, what's reasonable to ask for in diminished value, if any? Looking at these scratches I'm not too concerned myself if I was a buyer, and these pictures can be given to anyone interested in buying the car right? Any help appreciated.

 

[kingkong5]

Other than having to worry about diminished value, the only two things that really bug me about the hassle of getting this fixed is that we had to take all the HOV stickers off the car and now I have to get them replaced, and also the rental car I got was a Ford Fusion Hybrid. After not driving an ICE vehicle for a while, it's so weird to not be able to turn on my seat heaters from inside the house before I leave, and it's so slow! Also, yesterday was my first day with it, and after I parked it at work I walked off, leaving it unlocked since that's what we do in our cars. LOL. first world problems.

 

[M3BlueGeorgia]

Doubt if there is any significant diminished value from this kind of accident. Its both routine and minor.

But since we keep cars long past their viable used car resale point, what would I know?

 

[EV-Fixme]

Other than having to worry about diminished value, the only two things that really bug me about the hassle of getting this fixed is that we had to take all the HOV stickers off the car and now I have to get them replaced, and also the rental car I got was a Ford Fusion Hybrid. After not driving an ICE vehicle for a while, it's so weird to not be able to turn on my seat heaters from inside the house before I leave, and it's so slow! Also, yesterday was my first day with it, and after I parked it at work I walked off, leaving it unlocked since that's what we do in our cars. LOL. first world problems.

At least you didn't leave it running when you walked away, lol. My car had similar damage. The only damage was on the bumper cover, the impact felt solid and I was very surprised to see no damage at all when the cover was removed. I would believe yours to be similar.

If your concerned, take some pictures also, and keep the repair paperwork. I would expect this to be about the same amount of damage as someone walking by and nicking your bumper with something.

 

[Nogasmn]

Are you sure they are repairing the repainting your bumper? They might just replace it via a new factory painted bumper.

 

[kingkong5]

Are you sure they are repairing the repainting your bumper? They might just replace it via a new factory painted bumper.

I think it would be more $$$ to replace it with a new one. I did just get the repair info, looks like it’s $1000 to primer and repaint the bumper.

 

[OrbiterTI4]

Absolutely the DV can be greater than the repair cost. While you are correct the severity of the accident is low, the sole fact of an accident tied to your VIN appearing on a CarFax/similar report will lower your resale value.

I'd seek out a DV appraiser to try and get a thumb-to-the-wind on the DV and if its worth pursuing beyond the probably-lowball number insurance offers. I used Petty Details for my DV claim.

 

[BenderTmoc]

Try getting trade-in numbers for your car with and without an accident history. Your local showroom may be able to help with this? You could also try an online dealership, maybe Carvana.

As far as "how to ask," you just call up the insurance company and say you want a DV payout. You have to be the one to ask. They will not proactively offer it to you - they hope that you don't know that it exists. Anyway, they may give you some indication of how to proceed... they might require a DV appraisal for example.

Anyway, it's not an exact science, but I agree that in principal the DV payout could exceed the value of the damage. If I'm buying a car, I don't care about the magnitude of the accident on the history report; I want a car with a clean history and I'm going to avoid anything less. So it's possible that your car has lost significant value just because it's tainted, period.

Sorry you have to deal with it, but good luck!

 

[tyler2323]

View attachment 497592
I think it would be more $$$ to replace it with a new one. I did just get the repair info, looks like it’s $1000 to primer and repaint the bumper.

Man this sucks this minor damage will cost you a lot when you go to sale it unfortunately. It has nothing to do with anything but the fact that 99% of buyers want a clean title regardless of how bad the damage was.
I would keep all records you have for this accident, especially any photos before they did any repairs.
Have you ran a report to see what it says? The reports are much more detailed but sadly enough most owners still don’t care cuz all they think about is when they go to sale it after they are done with it?
I would find out what it says. If the damage is so minimal you may be able to get it removed due to how cheap the repairs were.
You definitely want to make sure it shows the car was able to drive after and not be towed. Make sure it says no air bad deployment.

Also run both a Carfax and an autocheck report. There are some insurances who do cover this but it’s never usually covered by another driver. So I suggest contacting your insurance too see what they say.
But most importantly keep anything that you can show a potential buyer later so they can have piece of mind and too try to recoup as much as possible cuz it will cost u money. It’s simple

Just give urself the test. You have 2 cars that are exactly the same. One shows a minor accident the other does not. How much would you need to save to buy the one in the accident over the one with a clean title?
This is what your buyers will contemplate

 

[tyler2323]

View attachment 497592
I think it would be more $$$ to replace it with a new one. I did just get the repair info, looks like it’s $1000 to primer and repaint the bumper.

If you haven’t had the repairs done refuse to have them do it. Get the money it costs from their insurance and find your own shop. There won’t be a record than.
Was a police report filed? Who’s your insurance and who was the one at fault insurance?

 

[BenderTmoc]

If you haven’t had the repairs done refuse to have them do it. Get the money it costs from their insurance and find your own shop. There won’t be a record than.

I don't think that's true. The repair shop doesn't create the entry on your report, the insurance company does. If they pay out for any accident whatsoever, it goes on the report.

 

[brkaus]

It's a 2018. DV for this claim will be low. Just keep the receipt and photos. Something like this cost me $250 at trade in time on a BMW once.

You can ask a DV expert (which may cost money), then you can file a claim with the insurance. If that doesn't work, you will have to take them to court (which costs time and money).

 

[brkaus]

Are you sure they are repairing the repainting your bumper? They might just replace it via a new factory painted bumper.

Well, the repairing option makes the shop more money.

 

[tyler2323]

I don't think that's true. The repair shop doesn't create the entry on your report, the insurance company does. If they pay out for any accident whatsoever, it goes on the report.

Not true it’s the police report that will always show it. Every insurance company is different and the fact that it’s not yours is more likely that they wouldn’t. Especially if you tell them you want the money and leaving it as is so you can show the next owner the damage that occurred. You can tell them not to include your car unless they want to pay for the loss of value due to the accident showing. There is also the difference between the report saying accident and damage. This is usually decided by price to fix it, the insurance company, and if your car was hit when parked.
When the amount to fix it is below a certain threshold damage may be used instead of accident.
Also when another company decides to pay you they usually don’t take the time to file your report so that it will show, whereas they have too when it’s their own client.
I also know there are insurances that do not get involved in reporting anything, they let the shop or the police make that choice. Especially if it’s minimal damage.
One easy way to tell is if they sent an adjuster out. If not there is a much greater chance your car will not show up.
You can always threaten to sue for the diminished slur which I believe is roughly 10%. If they have State Farm or Farmers they will most likely pay it out or not report it/try not to report but if it is they pay out for it cause you can take them to court for it.

But what I would do is tell them that you are concerned about the diminished value more so than the damage and that you just want the money and to have your car clear from any reports on their end. Threatening them will wanting the diminished value to be included is a must and is completely legal to do so. So I would definitely let them know you will be seeking diminished value on top of the damages. This actually lead to a lot of car be totaled that wouldn’t be if they didn’t threaten. Yours doesn’t meet that but it still allows you every right to pursue the diminished value in your payout.

Was their a police report? Who is your insurance?

I would definitely get on top of it and let them know that you are fully aware with what effect the crash will have on your cars value on top of the damage caused. As soon as they hear you say that they will try to do anything to make sure you won’t end up on the Carfax cuz than you have a case to pursue more money. So I would let them know your looking into how much more they owe u based on the value you now lost due to their insured driver. They might even just you a check for $5k and you could end up with a clean title.
So I would sit down and research the average it diminishes the value of a car when just in a fender bender and more so you have your knowledge about it prepared. That *sugar* always scares insurance companies. Be aggressive with it

Also when you speak to them make sure you use the terms replacement value and actual cash value. And make sure you know both of these values. Using these terms let’s insurance companies know you know a lot more about accidents etc than they want you too and will make them nervous

 

[tyler2323]

It's a 2018. DV for this claim will be low. Just keep the receipt and photos. Something like this cost me $250 at trade in time on a BMW once.

You can ask a DV expert (which may cost money), then you can file a claim with the insurance. If that doesn't work, you will have to take them to court (which costs time and money).

View attachment 497592
I think it would be more $$$ to replace it with a new one. I did just get the repair info, looks like it’s $1000 to primer and repaint the bumper.

It costs them time and money that they won’t show up for. It just costs you time. As long as it’s under I believe $5k or $10k it won’t cost you anything and don’t hire a lawyer. Every state is different when it comes to the value your seeking and what amount will cost you money to tak them too court. Anything under $5k is fine in every state I believe. You can even get on your computer and have the entire thing printed out with the court their info and yours and just have it in your hand like your waiting to hand it to them based on what they say.

 

[tyler2323]

It's a 2018. DV for this claim will be low. Just keep the receipt and photos. Something like this cost me $250 at trade in time on a BMW once.

You can ask a DV expert (which may cost money), then you can file a claim with the insurance. If that doesn't work, you will have to take them to court (which costs time and money).

View attachment 497592
I think it would be more $$$ to replace it with a new one. I did just get the repair info, looks like it’s $1000 to primer and repaint the bumper.

Like I said it’s usually 10%

 

[tyler2323]

Goodluck I think this will actually turn out really good for you


Here’s a link for you to checkout

How to Calculate the Diminished Value of Your Car | YourMechanic Advice

 

[OrbiterTI4]

It costs them time and money that they won’t show up for. It just costs you time. As long as it’s under I believe $5k or $10k it won’t cost you anything and don’t hire a lawyer. Every state is different when it comes to the value your seeking and what amount will cost you money to tak them too court. Anything under $5k is fine in every state I believe. You can even get on your computer and have the entire thing printed out with the court their info and yours and just have it in your hand like your waiting to hand it to them based on what they say.

I believe you're making reference to small claims court cases. If so, do NOT make the assumption the insurance company will not oppose or will not send a lawyer. Its anecdotal evidence, but my DV lawyer stated he had never filed a small claims (Justice court in TX) diminished value case that went unopposed by the insurance company.

 

[kingkong5]

Thanks for all of the wonderful advice! I appreciate the knowledge and experience so much, helps me feel a lot better about how to proceed. A few more details:

I'm insured with State Farm, but the other insured is with GEICO. I called my agent, let her know about the accident, and based on the minimal damage she suggested I can take it up with GEICO directly, but if they give me any grief then I can bring it back to State Farm. It was just a tap on the bumper, a deep imprint/hole was made in my rear bumper due to the mounting screw on the license plate of the car behind me. So like we've all agreed, the $1,000 repair is not a big deal, but the fact that it will have a CarFax scarlet letter on it from now on certainly would be.

I will call the GEICO adjuster today, he was the one who authorized the $1,000 repair bill. He also said that if I give them proof that I paid the $22 to get new CA HOV stickers, they'll pay for that too (yippee?). I'll advise him that because this accident will show up in my vehicle history, I am gathering data for a diminished value claim and I'm giving him a heads up about it. We will see where it goes from there. Of course, at the end of the day, it's only money, and DV is not realized until/if I sell the car, and at that future point in time it would be even less than what we would calculate today. I really must say, that the Tesla Model S is easily the best car I've ever owned, from the way it updates itself over the air, auto-pilot features, creature comforts, acceleration, quiet, and that I've not had to pay for fuel/electricity since I've owned it, I'm so amazed. We have a wonderful community here of owners, and I'm privileged to be part of it.

 

[Rockster]

Absolutely the DV can be greater than the repair cost. While you are correct the severity of the accident is low, the sole fact of an accident tied to your VIN appearing on a CarFax/similar report will lower your resale value.

I'd seek out a DV appraiser to try and get a thumb-to-the-wind on the DV and if its worth pursuing beyond the probably-lowball number insurance offers. I used Petty Details for my DV claim.

Definitely. I used Petty Details, too, and won a ~$5,800 DV claim on a repair much like yours that was about $1250. It's all about the value of the car before the damage and the perceived decrease in value by potential buyers. That's why a good diminished value estimator like Petty Details is invaluable.